SIA brochure covers the basics of buying stocks on margin. If your clients are curious about margin loans, you can refer them to a new SIA investor brochure, "Buying Stocks on Margin." It covers the benefits and risks of margin loans and explains the fundamentals.
With a step-by-step explanation of the margin loan process, using down-to-earth language and supporting graphics, this pamphlet helps clarify a befuddling topic. Technical terms, such as initial margin requirement, maintenance margin requirement and margin call, are defined when mentioned.
The brochure also outlines margin rules from government and self-regulatory organizations. And it includes a useful checklist with questions any investor should ask before opening a margin account. For example, "What is the interest rate charged for margin loans? How is it set? Under what circumstances does it change? How often?"
"Buying Stocks on Margin" is accessible to you and your clients through the SIA's Web site at www.sia.com/publications/html/investor_education.html#margin. Adobe Acrobat software (which can be downloaded free at www.adobe.com) is needed to view the brochure.
The brochure is also available to firms for personalization, so check with your firm.
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